Company: Dealstruck, Inc., Carlsbad, CA
Entry Submitted By: H3O Communications
Company Description: Dealstruck is a technology-driven direct lender offering lines of credit and term loans to small businesses (generally the mid-prime market), with the mission of delivering appropriate financing solutions that meet the true needs of small businesses across their financing lifecycle and putting these businesses on a path to bankability.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Startup of the Year - Business Products Industries

Nomination Title: Dealstruck

Tell the story about what this nominated organization has achieved since January 1, 2014 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Begin this section with the date since January 1, 2013 on which this organization began operations.

Dealstruck has reached several milestones since its inception. Dealstruck is the first alternative lender to offer multiple products to the mid-prime borrower, ranging from term loans to asset-based inventory lines of credit. This allows the company to provide a product fit based on its borrowers’ unique financing needs. To date, Dealstruck has completed over 300 loan transactions worth over $35 million, now has a team of 30, and has established relationships with The UPS Stores and Lending Tree. Additionally, Dealstruck has raised more than $12 million in equity since 2013.

Since January 1, 2014, the company has achieved a separate set of goals in its efforts to become an advocate for the SMB and expand its operations:

Focus on Borrower: Dealstruck began as a peer to peer lending platform but has transitioned in the last year toward being a direct lender instead. After securing significant lending capital from a number of institutional lenders, the company decided to direct 100% of its focus to borrower acquisition, lending directly from its own balance sheet. As the “lender,” Dealstruck takes balance sheet risk on every loan. This causes to the company to be more careful about understanding its borrowers and the risk they bring to a deal. Dealstruck is serving the borrower better by seeking fewer lending partners and directing its attention to the borrower.

Site Traffic: Dealstruck received just over 7,000 unique visitors in December (4,000 organic and 3,000 paid). Its goal is to double this traffic by Q4 2015.

Inventory Line of Credit: Dealstruck recently released its Inventory Line of Credit (ILC). The recurring need to purchase inventory requires a significant cash outlay from purchasing businesses, which subsequently must hold that inventory until it sells. With significant cash locked up in inventory, a lack of proper financing can be critically restrictive for new or growing companies. Dealstruck's ILC fits small businesses with all types of inventory needs, whether regular or seasonal. The ILC process is straightforward: Once a borrower provides a purchase order for inventory, Dealstruck directly pays the inventory vendor. The vendor ships inventory to the borrower, and, as inventory is sold, the borrower pays back each advance on the credit line in weekly installments over 13-26 weeks, including an interest-only period to allow the inventory to be delivered. Credit lines from $50,000-250,000 are available immediately, subject to credit approval.

In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this organization since the beginning of 2014 (up to 150 words).

**Focus on Borrower: Dealstruck began as a peer to peer lending platform, but has transitioned in last year toward being a direct lender. Dealstruck feels that it is serving the borrower better by seeking fewer lending partners.

**Site Traffic: Dealstruck received just over 7,000 unique visitors in December (4,000 organic and 3,000 paid). Its goal is to double this traffic by Q4 2015.

**Inventory Line of Credit: Dealstruck recently released its Inventory Line of Credit (ILC). With significant cash locked up in inventory, a lack of proper financing can be critically restrictive for new or growing companies. Dealstruck’s ILC allows for more flexibility.

Of the following measures of success, which ONE do you want the judges to most appreciate about your organization's story of achievement since the beginning of 2014?

Product Innovation